Ameriprise Financial (AMP) PriceWatch Alert Could Hit 21.70% Return

Posted: Monday, June 15, 2009 8:07 AM EDT

Ameriprise Financial (NYSE: AMP) ended the last trading session at $24.32. So far the stock has hit a 52-week low of $11.74 and 52-week high of $49.76. Ameriprise Financial stock has been showing support around 23.77 and resistance in the 25.29 range. Technical indicators for the stock are Bearish and S&P gives AMP a weak 2 STAR (out of 5) sell rating. AMP appears on the Investors Observer Stocks In The News list. On Friday, AMP priced an offering of 36 million common shares at $25 per share. For a hedged play on this stock, look at a Sep '09 20 covered call (AMP ID) for a net debit in the $18.92 area. That is also the break even stock price for this trade. This covered call has a 96 day duration, provides 22.20% downside protection and a 5.71% assigned return rate for a 21.70% annualized return rate (comparison purposes only). Ameriprise Financial has a current annual dividend yield of 2.58%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

Click Symbol For More News On: (AMP)